Deutsche Bank National Trust Company v. Payton

Defendant homeowners stopped paying their mortgage and warranty deed bearing Defendants' signatures conveyed home to buyers who obtained mortgage, and some of loan proceeds were used to extinguish Defendants' mortages on property. Once buyers' lender's assignor paid off Defendants' mortgages, assignor was subrogated, by operation of law, and it stepped into the shoes of Defendants' mortgage lenders. Thus, buyers' lender acquired priority interest in subject property. Court properly granted assignor's motion for summary judgment, predicated on doctrine of equitable subrogation. (HYMAN and PIERCE, concurring.)